INTERNSHIP REPORT

ON

AT VARUN BEVRAGES PVT. LTD (PEPSICO)

Submitted in Partial fulfillment of

MASTER OF BUSINESS ADMINISTRATION
in the
University School of Business
CHANDIGARH UNIVERSITY, GHARUAN
2017-18

Submitted by:
Name: ONKARPREET KAUR
UID: 16MBA1100

University School of Business

Chandigarh University
 DECLARATION
I, hereby declare that the work being presented in this report entitled “Performance
Appraisal” is an authentic record of my own work, carried out under the supervision of Ms.
“JYOTI VERMA”.

The matter embodied in this report has not been submitted by me for the award of any other
degree. This an authentic research work and has not been copied or duplicated from any other
source.

ONKARPREET KAUR
Specialization: - HR DATE
 ACKNOWLEDGEMENT

I am fortunate to have got an opportunity to undergo the “Internship” at VARUN

BEVERAGES PVT LTD (PEPSICO). The project has been very useful for me in
understanding the various pragmatic aspects of the management function practice in the real
world. I express my deep sense of gratitude to Ms. JYOTI VERMA (HR MANAGER), for
their counsel throughout my training. I would also like to express my gratitude to all the
members of Varun beverages for their assistance and constant motivation.

Above all, I give my special thanks to all my faculty members who have supported me. I am
very thankful to all of them who have guided me for my project.

(ONKARPREET KAUR)
 TABLE OF CONTENTS

Topics Page No.

Cover Page --
Declaration
i
Certificate of authenticity of Report to be signed by Industry Guide Ii
Certificate of Authenticity of report to be signed by Faculty guide iii
Acknowledgement
CHAPTER 1
FMCG industry in India 1-3
Introduction about Varun beverages 4
History of PEPSICO 5-7
Pespsi in India 8-9
Varun beverages Philosophy 10-11
Future plans of the Company 12
CHAPTER 2
Executive Summary 13
Product Profile 14-15
Consumer choice at Galance 16
Promotions by company 17
Comparison of PEPSI and COCA-COLA 18-20
SWOT 21
STEEP analysis 22-23
CHAPTER 3
Objective of study 24
Scope of the study 25
CHAPTER 4
Review of Literature 26-36
CHAPTER 5
Methodology 37-38
CHAPTER 6
Analysis and Interpretation 39-58
Chapter 7
Conclusion 59
Bibliography 60
Appendix 61
 Chapter 1
A brief insight- The FMCG Industry in India
Fast Moving Consumer Goods, also known as Consumer Packaged Goods (CPG) are
products that have a quick turnover and most relatively low cost. Consumers generally put
less thought into the purchasing of FMCG than they do for other products.

The Indian FMCG industry has witnessed significant changes through

the 1990s. Many companies had been facing severe problems on account of increased
competition from small and regional players and from slow growth across its various product
categories. Most of the companies were forced to revamp their product, marketing,
distribution and customer service strategies to strengthen their position in the market.

By the 20th century, the face of the Indian FMCG industry had
changed significantly. With the liberalizatio, the Indian customer witnessed an increasing
exposure to new domestic and foreign products through different media, such as television
and the Internet. And the social changes such as increase in the number of nuclear families
and the growing number of working couples resulting in increased spending power also
contributed to the increase in the Indian consumers' personal consumption. The realization of
the customer's growing awareness and the need to meet changing requirements and
preferences on account of changing lifestyles required the FMCG producing companies to
formulate customer-centric strategies. These changes had a positive impact that is leading to
the rapid growth in the FMCG industry. Increased availability of retail space, rapid
urbanization, and qualified manpower also boosted the growth of the organized retailing
sector.

Though the profit made on FMCG products is relatively small, they generally sell in large
numbers and so the cumulative profit on such products can be large. Unlike some industries,
such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every
time the economy starts to dip. A person may put off buying a car or any other luxury good
but he will not put off having his dinner.

Unlike other economy sectors, FMCG share float in a steady manner irrespective of global
market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs.
The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian
Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector,
is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be
worth Rs.143000 crores. This sector being one of the biggest sectors of the Indian Economy
provides up to 4 million jobs.
Today:

The fast moving consumer goods is the fourth largest sector in the Indian economy. The
market size of FMCG in India is estimated to grow from US$ 30 billion in 2011 and to US$
74 billion in 2018. Food products are the leading segment which is accounting for 43 per cent
of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in
terms of market share. Growing awareness, easier access, and changing lifestyles have been
the key growth drivers for the FMCG sector.

Rural – set to rise

Rural areas expected to be the major driver for Fast moving consumer goods, as growth
continues to be high in these regions. Rural areas saw a 16 per cent rise, as against 12 per
cent rise in urban areas. Most companies rushed to capitalise on this, as they quickly went
about increasing direct distribution and providing better infrastructure to them. Companies
are also working on creating specific products specially targeted for the rural market.

The Government of India has also been supporting the rural population with higher minimum
support prices (MSPs), loan waivers, and disbursements through the National Rural
Employment Guarantee Act (NREGA) programme. These measures are helping in reducing
poverty in rural India and given a boost to rural purchasing power.

Hence rural demand is set to rise with rising incomes and greater awareness of brands in rural
area.

Urban trends

With the rise in disposable incomes, mid- and high-income level consumers in urban areas
have shifted their purchasing trend from essential to premium products. In response, firms
have started enhancing their premium products portfolio. Indian and multinational FMCG
players are leveraging India as one of the strategic sourcing hub for cost-competitive product
development and manufacturing to cater to international markets.
The FMCG sector consists of the 3 categories:

1. The Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries,
Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe
care. The major players are : Hindustan Lever Limited, Godrej Soaps, Colgate, Marico,
Dabur and Procter & Gamble.

2. The Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household
cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito
repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever
Limited, Nirma and Ricket Colman.

3.The Branded and Packaged foods and beverages- Health beverages, Soft drinks,
Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-
creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour,
Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever
Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur.

CHANNELS OF BEVERAGE INDUSTRY

INTRODUCTION & COMPANY PROFILE

VARUN BEVERAGES :
Varun Beverages with the merger of Varun Beverages -Cola and Frito-Lay. Tropicana was
acquired in 1998. In 2001, Varun Beverages Co has merged with the Quaker Oats Company,
creating the world’s fifth-largest beverage company, with 15 brands – each generating more
than $1 billion retail sales per year. Varun Beverages success is the result of superior
products, high standards of performance, distinctive competitive strategies and the high level
of integrity of our people. Since the entry of Varun Beverages -Cola to India in 1989, the soft
drink industry has under gone a complete change. When Varun Beverages entered, Parle was
the leader with the Thums-up being its flagship brand. Other products offering by Parle
included Limca & Goldspot, another upcoming player in the market was, the erstwhile bottler
of Coca-Cola, “pure drinks”. Its offering includes Campa- Cola, Campa-Lemon & Campa-
Orange.

The family manufactures and sell Carbonated and Non-Carbonated Soft Drinks and Mineral
Water under Varun Beverages brand. The various flavors and sub- brands are Varun
Beverages, Mirinda Orange, Mirinda Lemon, Mountain Dew, 7UP, Slice Mango, Slice
Orange, Evervess Soda and Aquafina. Varun Beverages has the license to supply beverages
in the territories of Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3
districts of Maharashtra, 13 districts of Karnataka and whole of Nepal. The Varun beverages
group has in total 28 bottling plants in West Bengal, Karnataka, Rajasthan, Gujarat and
Maharashtra. (India & Nepal) and is responsible for producing and marketing 44% of Varun
Beverages requirement in India. There are about 4, 50,000 soft drink retailers in India and
their number is increasing day by day

Varun Beverages -Cola North America's carbonated soft drinks, including: Varun Beverages,
Diet Varun Beverages, Varun Beverages Twist, Mountain Dew, Mountain Dew Code Red,
Sierra Mist, and Mug Root Beer account for nearly one- third of total soft drink sales in the
United States

Varun Beverages Co, Inc. is one of the world's largest food and beverage companies. The
company's principal businesses include:

 Frito-Lay snacks
 Varun Beverages -Cola beverages
 Gatorade sports drinks
 Tropicana juices
 Quaker Foods

V B L, a bottling company, engages in bottling and distribution of Pepsi. The company was
incorporated in 1995 and is based in Gurgaon, India. Varun Beverages Limited operates as a
subsidiary of RJ Corp Limited.
BRIEF HISTORY : PEPSICO

PepsiCo, Inc., American food and Beverage Company which is one of the largest in the
world, with the products which are available in more than 200 countries. It took its name in
1965 when the Pepsi-Cola Company merged with Frito-Lay, Inc. The company’s
headquarters is in Purchase, New York.

Donald Mcintosh "Don" Kendall is a former businessman and political adviser. He is a

former CEO of Pepsi Cola and he served as CEO of PepsiCo from 1971 to 1986.

Herman Warden Lay was an famous American businessman who was involved in potato chip
manufacturing with his eponymous brand of Lay's potato chips. He started H.W. Lay Co.,
Inc., which is now part of the Frito-Lay Corporation, a subsidiary of PepsiCo
The very first Pepsi-Cola was created by Caleb D. Bradham (1866–1934),who was a
pharmacist in New Bern, North Carolina. Hoping to duplicate the recent success of Coca-
Cola, Bradham named his sweet sugary cola-flavoured carbonated beverage Pepsi-Cola in
1898. The drink proved to be so popular that in 1902 Bradham incorporated the Pepsi-Cola
Company. After many years of moderate prosperity, the company fell on hard times
after World War I and was reorganized and reincorporated on several occasions in the 1920s.

In 1931 the company’s trademark and assets were picked up by Charles G. Guth (1876–
1948), who was the founder of the modern Pepsi-Cola. He established a new Pepsi-Cola
Company, had a chemist formulated a better drink, set up new bottling operations, and began
merchandising a successful 12-ounce bottle for five cents. Guth was also president of Loft,
Incorporated, a candy manufacturer and soda-fountain chain (founded 1919), and in legal
battles in 1936–39 he lost the controlling interest in the Pepsi-Cola Company to the new
management of Loft. When in 1941 the Pepsi-Cola Company was merged into Loft, the name
Loft, Inc., was changed to Pepsi-Cola Company.

Pepsi-Cola advertisement.
Pepsi-Cola Company
In 1950 Alfred N. Steele (1901–59), a former vice president of Coca-Cola Company, became
the chief executive officer. His emphasis was on giant advertising campaigns and sales
promotions increased Pepsi-Cola’s net earnings 11-fold during the 1950s and made it the
chief competitor of Coca-Cola. After the death of Steele, his wife, actress Joan Crawford,
became an active director of the company. In 1965 Pepsi-Cola merged with Frito-Lay, Inc.,
the maker of snack foods such as Fritos, Doritos, Lay’s potato chips, and Rold Gold pretzels.
The newly company diversified further with the purchase of three restaurant chains—Pizza
Hut, Inc. (1977), Taco Bell Inc. (1978), and Kentucky Fried Chicken Corp. (1986; now called
KFC)—and Seven-Up International (1986), but in 1997 the restaurant chains were spun off
into a new, separate company called Tricon Global Restaurants, Inc. Looking to add more
and more products that were considered healthier, PepsiCo acquired the Tropicana and Dole
juice brands from the Seagram Company in 1998, and in 2001 it merged with the Quaker
Oats company to form a new division, Quaker Foods and Beverages. With the merger,
PepsiCo’s popular brands included Pepsi cola, Frito-Lay snack products, Lipton Tea,
Tropicana juices, Gatorade sports drinks, Quaker Oats cereals, and Rold Gold pretzels.

In the early 21st century, PepsiCo focused on expanding its operations in other countries,
notably Russia, which was its second largest market. In 2008 it bought a controlling interest
in JSC Lebedyansky Russia’s largest juice manufacturer, and three years later it completed its
acquisition of Wimm-Bill-Dann Foods. Those investments helped make PepsiCo the largest
food and Beverage Company in Russia.

Evolution of Pepsi LOGO

 History of Pepsi in India
PepsiCo entered into India in 1989 and grew to become one of the country’s leading food and
beverages companies. As one of the largest multinational investors in the country, PepsiCo
has established a portfolio of brands that seek to refresh and excite Indian consumers.
RJ corp. has been associated with PepsiCo since the latter’s entry into India .in 1991, a
license agreement was signed between the two companies and RJ corp. became PepsiCo
largest bottling business in India through its entity, Varun Beverages Ltd. (VBL).we seek to
serve our customers with passion to ensure Pepsi’s beverages brands retain their position as
market leaders in our franchise areas.

The group manufactures and markets carbonated and non-carbonated soft drinks and package
drinking water under the Pepsi brand umbrella. The beverage portfolio includes iconic
refreshment brands Pepsi, 7up, Mirinda and mountain dew, in addition to low calorie options
such as diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, juice
based drinks Tropicana, Tropicana twister and slice. Also Lehar verves soda among local
brands. The total turnover of the beverages division is about 800 cores and enjoy a healthy
market share of 52% vis- a- vis competition in the geographical domains that the group
operates. This is possible through rigorous & robust distribution set-up & aggressive input
deployments in the market place. VBL has selling & distribution rights in territories of East
Delhi, Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of
Maharashtra, North East and the entire country Nepal. The group has in total 9 bottling &
manufacturing plants in India & Nepal and is responsible for producing and marketing 30%
of Pepsi business in India.

PepsiCo, Inc. is currently one of the most successful consumer products company in the
world with annual revenues exceeding $30 billion and has more than 480,000 employees.

The PepsiCo challenge (to keep up with archrival The Coca-Cola Company)
never ends for the world's 2nd carbonated soft-drink maker.
PepsiCo may be vying for more Pepsi-drinking people but its hefty snacks and juice sales
help to quench the company's thirst for bottom-line growth. Frito-Lay’s salty snacks rule the
US market; the snack division accounts for about one-third of company sales. The company
announced a major restructuring in 2007, splitting its two business units (Pepsi-Cola North
America and PepsiCo International) into three: one for US food, a second for US drinks, and
a third for food and drinks abroad. CEO of PepsiCo Indra Nooyi said that due to the
company's healthy growth in recent years, PepsiCo is approaching a size that can be better t
here unit sratherthantwo.The split looks like this: PepsiCo Americas Foods includes Frito-
Lay NorthAmerica, Quaker, and the Latin American food and snack businesses; PepsiCo
Americas Beverages includes North American beverage sales, including Gatorade and
Tropicana; and PepsiCo International includes business in the UK, the rest of Europe, Asia,
the Middle East, and Africa. With a saturated soft-drink market, the company continues to try
new iterations: In2007 the company introduced its first vitamin-enhanced water, called
Aquafina Alive. It signed a licensing agreement with Ben & Jerry's in 2006 for the sale
of Ben & Jerry's milkshakes in the US, as well as a deal with Starbucks for the distribution of
the coffee purveyor's Ethos water brand. Hot on the heels of Coke’s introduction of Blak, in
2006 Pepsi launched a coffee-flavored cola, named, Pepsi Max Cino, in the UK. Venturing
further into the non-cola category, PepsiCo acquired sparkling juice companies IZZE and
Naked Juice in 2006. It also began selling Fuelosophy, asmoothie drink, at organic grocery
store chain Whole Foods, and struck a deal to develop products with juice maker Ocean
Spray Cranberries.

Key Facts

Indian headquarters: Gurgaon, Haryana

Employment opportunities: Presently employs 6400 people and provides indirect

employment to almost 200,000 people

Facilities:

 38 bottling plants
 3 food plants
 Varun Beverages

Philosophy

Our Vision

To become the most Successful & Profitable Beverage Company in the world
having Market Leadership in the territories we operate.

Our Mission

Being a Global, Growth Oriented and Profitable Organization by:

 Offering best quality & refreshing product to every customer & consumer.
 Being a preferred employer providing consistent growth path, respect &
empowerment.
 Creating value for our stakeholders by driving excellence in our operations.
 Being responsible towards environment & society.

Our Values

 We hold strong values in business and fully respect our customers, associates and
community.
 Our diversity and unity brings creativity to our relationships within our group, and to
our associates.
 We continuously excel to achieve and maintain leadership position in the chosen
businesses; and delight all stakeholders by making economic value additions in all
corporate functions.
 About Founder Chairman

 Mr. Ravi Kant Jaipuria is the promoter and founding Chairman

of Varun beverages Limited.
 Mr. Jaipuria has three decades of hands-on experience in conceptualizing,
executing, developing and expanding the Food, Beverages and Dairy
business in South Asia & Africa.
 He is the only Indian bottler to be awarded the PepsiCo “International
Bottler of the Year” award in the year 1997. It was presented at PepsiCo’s
centennial year and the award was presented by Mr. Donald M. Kendall,
Founder of PepsiCo Inc. in presence of Mr. George Bush, the 41st President
Of USA.
 He is hands on, well connected and respected entrepreneur of the
business community in South Asia and Africa.
 FUTURE PLANS OF THE COMPANY

 To capture major parts of the Global market so as to cater to the needs of both
domestic as well as the international market.

 To improve the productivity by effective utilization of resources.

 To expand the scale of production to enjoy the benefit of economies of scale i.e. to
increase the level of production to reduce the per unit cost.

 To minimize the wastage or scrap to ensure the cost effectiveness.

 To further improve the quality of the product so as to become the leading supplier of
Safety beverages, foods, mineral waters etc in the world
 Chapter 2

‘A study on Employees’ Performance Appraisal of Varun Beverages’

Executive summary:-

Human Resource Management focuses on the most key element of the organization. There
are several resources needed by the organization but most effective one is the human
resources. Human resource functions are broadly recognized by all organization, among these
important functions performance appraisal is a remarkable one. The report of the internship
has been titled as; “A Study on Employees’ Performance Appraisal of Varun beverages”.
The study basically based on the study overall employees performance appraisal.

Literally, performance appraisal, performance assessment and performance management, all

the terms refer to the process of comparing the actual performance with the relative
standards, here employees performances are evaluated to determine the extent to which
employees performances contribute to strategize organization goals. The appraisal process of
Varun Beverages, one of the largest franchisee in the world (outside US) of carbonated soft
drinks (“CSDs”) and non-carbonated beverages (“NCBs”) sold under trademarks owned by
PepsiCo have been described in a precise form.

Having been an intern here, several things have been appeared in mind to make the report;
finally performance appraisal process has been chosen. Performance appraisal has been
selected because it is a vast area to study and so many things to learn in a realistic point of
view.

The report actually aimed at having a pragmatic notion on performance appraisal process and
how it effects in the development of human resources and organization development. Here
the study also has fulfilled some other relevant purposes, such as, having a view of
assessment of the organization to discuss critically and recommend on the shortcomings that
found.

While making the analysis on Performance Appraisal Process I have provided detailed
information about performance evaluation and I have covered all the related factors with it
and in addition to that I have tried to incorporate the theories that I have learned with the
practices I have seen. This report also provides a brief overview on different tasks I had to
perform during my internship, the responsibilities I had to handle during the internship, my
personal observation regarding the critical issues, the lacking of the HR Department and my
recommendations for improving the total HR practices of Varun Beverages.

In this project, all the respondents provided their full cooperation and participated
enthusiastically.
 PRODUCT PROFILE OF PEPSICO

There are Eight brands of Pepsi in India and they are differ in taste, flavor and also in their
colors.

1. PEPSI

Pepsi is considered to be cold drink. It is generally preferred by all sections of

consumer. This is a case cow brand for the company in terms of sales revenue.

2. MIRINDA

Mirinda is considered to be lemony in taste, and comes under the light drink.

3.7UP

7up is a good product at Pepsi and contains at lemon flavor.

4. MOUNTAIN DEW

Mountain dew is also considered to be a cold drink. It is light comparison to Pepsi. It is

preferred by all section of consumer but especially to teen-age. It is big source of company to
cash its publicity

5. SLICE

SLICE MANGO, in slice cold drink no gas only based on juice. It is a non-aerated soft drink.
It is preferred mostly Children & Women.

6. Tropicana

In Minute maid pulpy orange cold drink no gas only based on orange juice. It is a non-aerated
soft drink.

7. Eversses Soda

This is soda drink. It has no color and no flavor. It is generally used with alcohol and used by
adults.

8. Aquafina water

It is mineral water.
PepsiCo’s “green” PET Bottles and Cans 100 percent recyclable made
entirely from renewable and plant sourced raw materials.

PepsiCo outsells Coca-Cola brands in most of the vital fast growing beverage categories such
as bottled water, juices and sports drinks. Aquafina, Tropicana and Gatorade brands hold
leading market shares in all of the three categories; surpass Coca-Cola's Dasani, Minute-Maid
and Powerade brands respectively.
 CONSUMER CHOICE AT A GLANCE

Pepsi : Mainly preferred by youngster & kids

Mirinda : Common Drink.

Slice : Basically preferred by Ladies & kids.

7up : Youngster

Mountain dew : Youngster

Tropicana : Basically preferred by Ladies & kids.

Eversses Soda : Mostly those who consume liquor.

Aquafina : Mostly preferred by travelers.

 PROMOTION BY THE COMPANY

All advertisement expenditure is incurred by PepsiCo India, but only D.P. Board, wall
painting, S.G.A.’s etc. Company spends on it around 8-9% total sales company
invested 305cr rupees in advertisement budget.

Radio

T.V

Hoardings

Road signs

Sticker

Neon light
 Comparison PEPSI Co and Coca-Cola
1. Earnings
PEP may own a more diverse product line, but Coca-Cola has been able to drive more
earnings to its bottom line. While Pepsi’s net income has been trending downward in recent
years, it manages to stay ahead thanks to superior margins. Pepsi has produced consistent net
profit margins of around 10%, while Coca-Cola margins have been in the 15-18% range for
the past several years.

2. Sales
Coca-Cola may be able to produce more net income, but Pepsi has been generating more top-
line revenue than Pepsi for decades. Pepsi is primarily a beverage business,
but Pepsi generates around half of its sales from food brands such as Doritos, Frito Lay and
Quaker Foods. Soda sales declined for the 12th consecutive year as investors have been
turning to bottled water.
3. Consecutive Dividend Increases
Both Coca-cola and Pepsi have served their shareholders well over the past several decades
with their commitment to continuously paying and growing their quarterly dividends.
Both are dividend aristocrats, which are companies that have raised their dividend for at least
25 consecutive years. As a result, these companies are highly sought after by dividend
investors for their predictable and sustainable income streams.

4. Dividend Growth
Perhaps just as impressive as their streak of consecutive dividend increases is the rate at
which both companies have grown their dividends. Coca-cola has averaged an 8.5% annual
increase over the past decade, while Pepsi has posted an average raise of nearly 10% over the
same
5. Social Media Following
Social media is an ideal channel for marketing a business, since users essentially opt in to
receive low cost advertising. Effective strategies generate strong word of mouth and can
reach millions of individuals in minutes. Coca-cola recently passed 100 million likes on Face
book, while Pepsi also maintains a strong presence. Both companies have smaller, yet
important, followings on other platforms such as Twitter and Instagram.

6. Price Performance
The continued weakness in soda sales has especially impacted Coca-cola’s stock. Over the
past five years, Pepsi has significantly trailed the performance of both Pepsi and the S&P
500. Pepsi’s more diversified line up of food products have helped soften the blow of
declining soda sales. However, on an overall basis, both companies have been experiencing
negative sales growth. Due to these factors, Coca-cola and Pepsi have both been
underperformers compared to the broader market.
 SWOT ANALYSIS
STRENGTH

•Pepsi is a well established company, so it has a good reputation in the market.

•Advertising of Pepsi is much more aggressive than coke.
•Backed by huge promotion at National and International level.
•Lot of SGA’s provided in the market

.
WEAKNESS

•Non-fulfilment of commitments on time, made to shopkeepers.

•Incompetent salesman who do not give the schemes in the market regularly.
•Unavailability of various demanded flavours like Mirinda and Mirinda Lemon.
•No repairement services on time for fridges.

OPPURTUNITY

•May tie up or liaison with major showrooms, computer centres and restaurant.
•Huge publicity of lemon Mirinda/ Slice has created a lot of demand.
•Company has brand equity in the eyes of customers, so its new products can easily
penetrates in the market.

THREAT

•Threat of competitors’ new brand entry in the market in near future.

•Restrictions made by Govt. agencies that soft drinks are harmful and non- nutritive.
•Natural juices are now available whose price are less or same as soft drinks.
 STEEP analysis

After its rival Coca-Cola, PepsiCo is the largest selling beverage internationally. In 2011,
sales of this brand accounted for around 37% share of the global beverage market. As a
result, the company felt the need to study and understand every country’s market by
conducting STEEP analysis. The aim was to maintain the market position.

No one will disagree that Pepsi is a big brand. At the time of analysis, it was at the 23rd spot
in the Interbrand’s report for the World’s Leading Brands. The beverage’s advertisements
feature famous celebrities and athletes. Past ads have flaunted stars like David Beckham,
Britney Spears, Robbie Williams and Michael Jackson.

You might have noticed that Pepsi’s market reach is also quite diverse. From the US to New
Zealand, you can find Pepsi in almost every country.

Below, I have provided a STEEP analysis example for the firm, with a detailed explanation
for all 5 factors:

Social
It was found upon analysis that social factors impact Pepsi greatly.

I believe the main reason is that Pepsi is a non-alcoholic beverage, which has to maintain the
strict and stark differences in cultures around the globe. Pepsi must communicate its image as
a global brand in order to change people’s perception. The company expects consumers to be
able to think of the drink as something that connects the world together.

Most often, the social implications are visible in marketing campaigns. A good example
would be featuring religious festivals in TVC ads. Therefore, Pepsi has to keep in line with
all of those festivals if the team wants to understand the essence of their market. Analyzing
the social factor would help cash upon the opportunity.

Technological
As the technology is advancing with passing time, big and small companies feel the pressure
to completely integrate themselves with the recent changes. Social Media is a very recent
yet viral trend that every business is turning toward. The social media blast has increased
interactive engagement with the customers and offers real time results too.

So, Pepsi has to make attempts to stay ahead of all such developments. It is essential to give
importance to how today’s youth is utilizing technology for their benefit and how Pepsi can
reach them to continue increasing brand engagement and brand recall.
 Economic
As you are aware, the economic downturn plagued the economy and companies had to
completely restructure their marketing and sales campaigns. The reduced profits led them to
downsize internally and reconsider about how they should penetrate the market.

I think economic conditions influence the business most, regardless of what kind of business
it is. I would say in Pepsi’s favor that when the economic downturn started in 2008, it
resulted in increased sales for the company. This is because people started spending more
time with friends and family, or at home, when they got laid off from jobs.

Ecological
Ecological factors might affect Pepsi, but it will not have any immense toll on its trade and
profit generation. Ecological factors usually affect agricultural businesses more directly.

Political
As I mentioned previously, Pepsi is a non-alcoholic beverage and so the FDA regulates it.
Pepsi is expected to maintain a firm standard of the laws that the FDA sets with consistency.
Many different markets across the world follow different set of regulations, which are either
relaxed or severe.

Pepsi’s competitors like Coca-Cola presents competitive pricing and this is a factor, which
the firm should keep in mind all the time. The political scenario is very important because
there can be certain civil disturbance in some markets. Another reason could be fall in sales
due to inflation. The most important element of all is that cross-border situations are
extremely different. As a result, Pepsi has to stay in line with all changes and policies in
order to adapt to them accordingly.
 Chapter 3

Objectives of the study

The following are the objectives of the study –

1. To develop my understanding of the subject.

Performance Appraisal System implemented in various Organizations varies according to the
need and suitability. Through my research, I have tried to study the kind of Appraisal used in
the Organization and the various pros and cons of this type of system.

2. To conduct a study on social behaviour.

Social behaviour is a very unpredictable aspect of human life but social research is an attempt
to acquire knowledge and to use the same for social development.

3. To enhance the welfare of employees.

The Appraisal system is conceived by the Management but mostly does not take into
consideration the opinion of the employees. This can lead to adverse problems in the
Organization. Therefore by this study I have attempted to put forth the opinion of the
employee with respect to the acceptability of the Performance Appraisal System.

4. To exercise social control and predict changes in behaviour.

The ultimate object of my research is to make it possible to predict the behaviour of
individuals by studying the factors that govern and guide them.
 SCOPE OF STUDY

STUDY OF HRD SYSTEM IN VARUN BEVERAGE LTD. PEPSICO

HRD provides the tools you required to manage and operate an organization. Everything –
production, management, marketing, sales,
research &development, everything may be moreproductive if people of an organization are
sufficiently motivated, trained, informed, managed, utilized and empowered. VARUN
BEVERAGE LTD. considers human resources the most valuable asset of the group, also the
most enduring, it is important not only to provide them with adequate opportunities but also
appropriate training to enhance their skills.

VBL believes that a quality workforce build a quality organization. Towards this objective
group’s retail training division has devised strategies that help develop the employee
knowledge and skills. The HRD is for the complete monitoring of various processes
conducted for the employees of VBL ,in other words this department keeps track of the
number of persons being trained, selected and recruited each month in a year, the engineer of
this department keeps the note of the number of persons being trained, selected, and
recruited each month. The system gives us complete information about the details of the
persons their number for current menthe and also the cumulative figure. Considering the
economic condition of country and the public sector undertaking in particular the chairman,
as well as managers of the subsidiary companies have been emphasizing on the need for
improving the effectiveness of executives, supervisors, workers at all levels of the company
through intensive training. In VBL effective utilization of available manpower is of critical
importance, this can be achieved through refresher training, basic training, retraining, on the
job training of all employees, especially training of the apprentice and young entrants. The
Human Resource Development Department promotes VBL to move ahead with its objectives
.The management development division looks after training and development affords for
executive through in- company and external training programs .The technical division looks
after training of manufacturing personnel for skill development and coaching for carrier
growth as well as meeting technical manpower needs.
 Chapter - 4

Review of literature:

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human Resource (or personnel) management, in the sense of getting things done through
people, is an essential part of every manager’s responsibility, but many organizations find it
advantageous to establish a specialist division to provide an expert service dedicated to
ensuring that the human resource function is performed efficiently.
“People are our most valuable asset” is a cliché, which no member of any senior management
team would disagree with. Yet, the reality for many organizations is that their people remain
undervalued, under trained and underutilized.
The market place for talented, skilled people is competitive and expensive. Taking on new
staff can be disruptive to existing employees. Also, it takes time to develop ‘cultural
awareness’, product / process / organization knowledge and experience for new staff
members.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are essential for
the effective functioning of the organization:
1. Recruitment
2. Selection
3. Induction
4. Performance Appraisal
5. Training & Development

Recruitment
The process of recruitment begins after manpower requirements are determined in terms of
quality through job analysis and quantity through forecasting and planning.

Selection
The selection is the process of ascertaining whether or not candidates possess the requisite
qualifications, training and experience required.

Induction
Induction is the technique by which a new employee is rehabilitated into the changed
surroundings and introduced to the practices, policies and purposes of the organization.
WHAT IS “PERFORMANCE APPRAISAL”?

Performance Appraisal is defined as the process of assessing the performance and progress of
an employee or a group of employees on a given job and his / their potential for future
development. It consists of all formal procedures used in working organizations and potential
of employees. According to Flippo, “Performance Appraisal is the systematic, periodic and
an important rating of an employee’s excellence in matters pertaining to his present job and
his potential for a better job.”

CHARACTERISTICS

1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an employee in terms of
his job.
3. It is scientific and objective study. Formal procedures are used in the study.
4. It is an ongoing and continuous process wherein the evaluations are arranged periodically
according to a definite plan.
5. The main purpose of Performance Appraisal is to secure information necessary for
making objective and correct decision an employee.

What Is To Be Appraised?
Appraisal is to be done of:
•Behaviour, including observable physical action, movements.
•Traits, which are measured in terms of personal characteristics

Who Will Appraise?

•Superiors.
•Peers.
•Self Appraisal.
•Subordinates.

When to Appraise?
•Appraisal should be done periodically.
•Appraisal should be done formally as well as informally.
•Appraisal should be done systematically.
•Appraisal of performance should also be done after an employee is promoted or transferred
to another job.
TECHNIQUES OF PERFORMANCE APPRAISAL

1. Essay Appraisal:
Essay Appraisal is a detailed description of an employee’s strengths, weaknesses, past
performance, potential, and suggestions for improvement. In this, the ratter describes the
performance of the employee in his “own words”. He has to devote considerable time and
thought for writing his analysis. He generally writes from diaryof observed critical incidents
kept by him

Merits
•It is a simple method.
•It provides detailed feedback to subordinates.
•The rater is given the opportunity to express specific points regarding a
particular employee’s performance.

Demerits
•The usefulness of the essay appraisal depends heavily on the writing skills of the supervisor.
•The use of this evaluation for rewards and validation of selection devices is severely limited.
•It is unstructured.
•It provides only qualitative data

2. Critical Incident Appraisal:

This method requires the rater to maintain a record of key behaviours that may be critical to
make the difference between doing a job effectively and doing it ineffectively. The rater
writes down anecdotes that describe what the employee did that was especially
effective or ineffective. It provides information based on systematic observation of actual job
performance.

Merits
•It looks at behaviours.
•The list of critical incidents tells which of employee’s behaviours are desirable and which
one calls for improvements.
•It emphasizes rating on objective evidence rather than on the subjective evaluation of traits.
•The supervisor finds counselling easier since he knows his subordinates’ strengths and
weaknesses

Demerits
•It is time-consuming and burdensome for appraisers to regularly write these incidents down.
•Critical incidents do not lend themselves to quantification. Thus, the comparison and
ranking of subordinates is difficult.
•It may lead to too much supervision with the employees feeling constantly under “watch”
 3. Checklist
In the checklist method, the evaluator uses a list of “behaviouraldescriptions” and ticks those
behaviours that apply to the employee. The rater merely goes down the list and gives “yes” or
“no” responses. He “checks” and “ticks” the items. If the employee does not possess a listed
trait, he leaves it blank.

Merits
•The checklist method reduces some bias, since the rater and the scorer are different.

Demerits
•It is difficult and costly. Because if there is a big number of job categories, a checklist of
items must be prepared for each category

4. Graphic Rating Scale:

It is one of the oldest and most popular methods of appraisal. In this method, the appraiser,
who is usually the supervisor, is supplied with printed form, one for each person to be rated.
For lower level employees, typical qualities rated are quantity and quality of work,
job knowledge, cooperativeness, dependability,initiative,industriousness, willingness to accep
t responsibility, attitude. For managerialpersonnel, the attributes included are analytical abilit
y, judgement, leadership,
communication skills, initiative, knowledge of work, creative ability, imagination,
interpersonal skills, planning and decision- making abilities. The assessor goes down the list
of factors and notes that point along the scale that best describes the employee.

Merits
•Rating scales are less time- consuming to develop and administer.
•They also provide space for the rater to comment on the evaluation given for each
characteristic.
•Rating scales are easy to understand and require no detailed training. •
They allow many employees to be rated quickly.
•In these scales, more than one performance dimension can be included.
•They permit quantitative analysis and comparison. Since the standardizedcomparisons
across sections and departments can be made.

Demerits
•The traits indicated on the scale are mostly subjective.
•This method is subject to all the rating errors, i.e. leniency, severity, central tendency and
halo effect
 5. Forced Choice:
In this method, the ratter has to choose between two or more statements, all of which may be
favourable or unfavourable. The rater’s job is to identify which statements is most (or in
some cases least) descriptive of the individual being evaluated.

Merits
•The evaluation is more objective.

Demerits
•This method tends to be disliked by raters because they are forced to makedistinctions
between statements that are difficult to differentiate between.
•Raters also may become frustrated.
•It is very difficult to keep secret of the values attached to various statements.

6. Behaviourally Anchored Rating Scales (BARS):

This method has been produced by combining major elements from the critical incident and
graphic rating scale approaches. These scales are descriptions of various degrees of behaviour
relating to an aspect of performance dimension. This approach starts with a rating scale but it
uses critical incidents to provide “anchors” which means ‘examples’ for different points on
the rating scale. These examples or anchors make the rating scale more job- specific rather
than trait-oriented; it is hoped, less subjective and less error-
made. The appraiser rates theemployees based on items along a continuum, but the points are
examples of actual behaviour of the given job rather than general descriptions or traits.

Merits
•BARS are based on a careful analysis of the job. These scales specify definite, observable
and measureable job behaviour.
•This method tends to reduce rating errors.
•BARS evaluations are generally upheld due to its job relatedness.

Demerits
•It is rather difficult, cumbersome and expensive method.
•It is time- consuming to develop.
•The behaviours used are actively- oriented rather than results- oriented.
 7. Ranking Methods:
Under this method, a man is compared with all others without considering any specific
factors. A rank is prepared by placing the best at the top and
thepoorest in performance at the bottom. An employee’s performance ranking cans bedetermi
ned by using either one global criterion or a number of criteria. There are various ranking
methods like:

i.)Simple or Straight Ranking: -

This method requires the rater to rank all the subordinates from best to worst. It provides for
an ordinal scoring- first, second,
thirdand so on. In this the ranking is usually confined to one factor, i.e. overallperformance. It
is a simple method but it may involve bias.

ii.)Paired Comparison:
This is a modified way of man- to- man ranking. In this, each employee is compared with all
the others in pairs one at a time. The number of times an employee is judged better than the
others determines his rank. The number of comparisons to be made can be decided on the
basis of the following formula:
N (N-1)2
Where, N is the number of persons to be compared.
This method is easier and simpler than the ranking method. It is subjective because appraisal
is not based on specific job related performance. It also becomes cumbersome when the
number of employees to be rated is large.

Iii.)Alternative Ranking: -
Under this method, employees are ranked from best to worst on some characteristic. Thus, a
new list is created with the name of the best employee at the top and the worst at the bottom.
Again, the appraiser selects the best and poorest from the remaining employees and so on
until all employees have been crossed off the original list and placed on the new list.

8. Forced Distribution Ranking: -

This method assigns employees to different performance groups: above average, average
and so on. Thus, employees are rank ordered in terms of their “performance group”, rather
than as individuals. This method assumes that the level of employee job performance
conforms to a normal statistical distribution. The employee performance levels conform with
a bell- shaped curve.

Merits
•They can be helpful when the results of the performance appraisal are used to distribute
rewards such as pay raises or financial incentives.
•They are inexpensive to design and implement.

Demerits
•The magnitude of differences in employee performance is not specified.
•Ranking large numbers of employees may become a very cumbersome.
•Ranking is not as useful as alternative methods in providing performance feedback, or in
showing employee strengths and weaknesses necessary for the development of employee
training and development programmes.
 9. Confidential Report:
A confidential report is a report prepared by the employee’s immediate superior. It covers
limited range of aspects like the subordinate’s strengths, weaknesses, major achievements or
failures and information on some personality traits. It Isa descriptive appraisal mainly used
for promotions and transfer purposes. Only in recent year, this has been made necessary by
trade unions and courts to communicate a negative confidential report to the e employee.
This method focuses on evaluating rather than developing the employee.

10. Group Appraisal Method

Under this method, a group of evaluators assesses employees. This group consists of the
immediate supervisor, head of the department and a personnel expert.
This group determines the standards of performance for the job, measures actual performance
of employees analyses the causes of poor performance and suggests for improvements.
Personal bias is minimized due to multiple evaluators, but it is consuming method.

11. Field Review Method:

Under this method, the line officers do not themselves fillip the rating form. Instead, the
representatives of the personnel department come to the shop- floor and interview the
supervisors to obtain pertinent information about employees. The interviewer
asks questions and takes detailed notes of the answers given by supervisors. These are then
approved by the concerned supervisor and then placed in the employee’s service file.
This method relieves the supervisor of the need for filling in appraisal forms. This is an
objective method because the supervisor’s personal bias is reduced due to the active
involvement of the personnel officer. This may be a time-consuming method. Its success-
depends upon the competence of the interviewer.

12. Assessment Centre Method:

Under this method, a group of employees is drawn from different work units. They work
together on an assignment. Evaluator’s
observeand rank the performance of all the employees. The employees are evaluated bothindi
vidually and collectively by using simulation techniques like role playing, businessgames and
in- basket exercises. In this, job- related characteristics are evaluated todetermine employee
potential for promotion. The qualities generally evaluated are interpersonal skills,
communicating ability, and ability to plan and organize.
 13. Human Resources Accounting Method:
When well- recruited and developed employees leave the Company, the financial assets are
decreased due to their higher productivity. Under this method, the performance is judged in
terms of costs and financial gain. Costs of human resources consist of expenditure incurred
on recruitment, selection, training, compensation, etc. Contribution of employees is the
money value of their productivity and creative ideas. The performance of employees can be
judged on the basis of difference between their costs and contributions. To judge
performance, the following factors are considered:
a.)Average value of production.
b.)Quality of items produced.
c.)Overhead cost.
d.)Cost of errors, accidents, spoilage, wastages and damages.
e.) The cost of the supervision.

14. MANAGEMENT BY OBJECTIVES (MBO)

Peter F. Drucker was the first who gave the concept of MBO to the world way in 1954when
his The Practice of Management was first published.
According to Prof. Reddin, “BO is the establishment of effectiveness areas and effectiveness
standards for the managerial positions and the periodic conversions of these into measurable
time bound objectives linked vertically and horizontally and with future planning”.
MBO helps and increases employee motivation but it relates over all goals to the individual’s
goals and helps to increase an employee’s understand of where the organization is and
where it is heading.
MBO results in a “means ends” chain. Management at succeeding lower level in the
organizations establishes targets which are integrated with those at the next higher level.
Thus, it can insure that everyone’s activity is ultimately aimed towards organization’s goals.
MBO identifies performance deficiencies and enables the management and the
employees to set individualized self- improvement goals and thus proves effective Training
and Development program.
RECENT DEVELOPMENTS IN PERFORMANCE APPRAISAL

15. 360 degree Performance Appraisal: -

The term ‘360 degree’ is used to describe the comprehensive nature of feedback
derived from a composite rating from peers, subordinates, superiors and occasionally
customers. First developed at General Electric, US in 1992, this system has become popular
in India also. GE (India), Reliance Industries, Wipro, Infosys are using this method with
greater benefits. The Press has recently reported that companies like 3M and British
Aerospace is introducing 360 degree appraisal and feeding the results into the formula for
performance- related pay for managers. The 360degree appraisal has proved to be useful
especially for providing feedback for senior managers who are often neglected at the top in
appraisal terms. In 360 degree appraisal, besides assessing performance, other attributes of
the assessee like talent, values, loyalty etc are evaluated by the people who are best placed to
do it. Since this kind of appraisal method uses multiple raters for appraisal, this offers a
variety of benefits. Firstly, there will be objectivity in rating as more than one rater is
involved in the assessment process. Furthermore the raters at different levels in the
Organization often observe different faces of the employee’s performance. Another key
advantage of the broad group of appraisers involved in the process is that it can provide a
more meaningful appraisal for employees with little contact with their workplace. In such
situation traditional top- down appraisals are of little value. But besides all this one particular
criticism of many 360 degree systems is that all the raters are given the same instrument,
despite different nature of the contact with the appraise.

16. Upward Appraisal:

Upward Appraisal involves the employee rating their manager’s performance via an
anonymous questionnaire. The process is anonymous to overcome employees’ worries about
providing an honest but unfavourable feedback on managerial performance. The benefits of
upward appraisal include improved managerial effectiveness and leadership through ‘make-
you- better’ feedback and increased employee voice and empowerment.

17. Team- based Appraisal: -

In this kind of appraisal the manager appraises the team of employees working under him as a
whole. Targets are set, performance measured and assessments are made and rewards
are allocated as with traditional individual appraisals .The manager makes no attempt to
differentiate one member from another in performance terms. The teams are then encouraged
to resolve internally any performance problems or competence deficiencies in order to
facilitate overall team performance and development. Team members may themselves
provide informal rewards or recognition of superior performance.Sometimes it is also seen
that the individual appraisals of each team member is made but not by management. Rather,
it is in the form of peer appraisal, where team members appraise each other via the use of
anonymous rating questionnaire
 ERRORS IN PERFORMANCE APPRAISAL

1. Rating Errors in Performance Appraisals:-

Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as
'rating errors'. These errors can seriously affect assessment results. Some of the most common
rating errors are: -

2. Leniency or severity:-
Leniency or severity on the part of the rater makes the assessment subjective. Subjective
assessment defeats the very purpose of performance appraisal. Ratings are lenient for the
following reasons:
a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will
reflect poorly on his or her own worthiness.
b) He/She may feel that a derogatory rating will be revealed to the rate to detriment the
relations between the rater and the ratee.
c) He/She may rate leniently in order to win promotions for the subordinates and therefore,
indirectly increase his/her hold over him.

3. Central tendency: - This occurs when employees are incorrectly rated near the
average or middle of the scale. The attitude of the rater is to play safe. This safe playing
attitude stems from certain doubts and anxieties, which the raters have been assessing the
rates.

4. Halo error: - A halo error takes place when one aspect of an individual's performance
influences the evaluation of the entire performance of the individual. The halo error occurs
when an employee who works late constantly might be rated high on productivity and quality
of output as well ax on motivation. Similarly, an attractive or popular personality might be
given a high overall rating. Rating employees separately on each of the performance
measures and encouraging raters to guard against the halo effect are the two ways to reduce
the halo effect.

5. Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or
low score are given only to certain individuals or groups based on the rater's attitude towards
them and not on actual outcomes or behaviors; sex, age, race and friendship biases are
examples of this type of error.

6. Primacy and Regency effects: - The rater's rating is heavily influenced either by
behavior exhibited by the ratee during his early stage of the review period (primacy) or by the
outcomes, or behavior exhibited by the ratee near the end of the review period (regency). For
example, if a salesperson captures an important contract/sale just before the completion of the
appraisal, the timing of the incident may inflate his or her standing, even though the overall
performance of the sales person may not have been encouraging. One way of guarding
against such an error is to ask the rater to consider the composite performance of the rate and
not to be influenced by one incident or an achievement.
7. Performance dimension order: - Two or more dimensions on a performance
instrument follow each other and both describe or rotate to a similar quality. The rater rates
the first dimensions accurately and then rates the second dimension to the first because of the
proximity. If the dimensions had been arranged in a significantly different order, the ratings
might have been different.

8. Spillover effect: - This refers lo allowing past performance appraisal rating lo

unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for
current period although the demonstrated behavior docs not deserve the rating, good or bad.
 Chapter 5

Methodology

The research methodology I used for this project is simple and easy in comprehending. I have
used two methods for collecting the desired information regarding PepsiCo Human Resource
Management and Performance appraisal which were primary and Secondary data collection
method. I have conducted a field study by visiting the HRM department of Varun Beverages.
I have interviewed the Head of the HR department Ms. Jyoti Verma. and got the following
information.

The data source:

Primary as well as Secondary.

The research approach:

Survey Method.

The research instrument:

Questionnaire.

The respondents:
The Managers & Employees of Varun Beverages. The primary data was collected with the
help of survey information. A concise questionnaire was prepared keeping in mind the
information specifications

Type of Research

A Research design specifies the methods and procedures for conducting a particular study. It
is amap (or) blue print to which the research is to be conducted. The research design will give
a clear cut idea of the procedure to be followed for the completion of the project. The
research has been carried out with certain focused objectives which need to be fulfilled after
the completion of the study. The completion of these objectives will throw some light on the
problem.

EXPLORATORY research design has been considered as a suitable methodology for

present study and for data analysis.

Sample size and method of selecting sample:

Sampling refers to the method of selecting a sample from a given universe with a view to
draw conclusion about that universe. A sample is a representative of the universe selected for
study. Convenience sampling is used in exploratory research where the researcher is
interested in getting an inexpensive approximation of the truth. As the name implies, the
sample is selected because they are convenient.
 This non probability method is often used during preliminary research efforts to get a gross
estimate of the results, without incurring the cost or time required to select a random sample.

There are two types of sampling:

Random Sampling –
Random Sampling is a process of selecting the sample size randomly and no choice or
preference to be made about the selection of respondents for the market survey and
Questionnaire to be put forth against him.

Systematic Sampling –
It is a sampling where the limited number of selected respondents is figure out based on some
criteria so that only those respondents can be asked for the purpose of filling questionnaire.

Sample size:
The sample size for the survey conducted was 50 respondents. All were employees of VBL
PepsiCo.

Random sampling Technique was used in the survey conducted.

RESEARCH DESIGN
Research design is the overall description of all the steps though which the projects have
preceded from the setting of objectives to the writing of the project report. The success of the
project depends on the soundness of the research design, which includes problem definition,
specific method of data collection and analysis and time required for the project.

SOURCES OF DATA COLLECTION

THE PRIMARY SOURCES

•Collection of data with the help of questionnaire related to performance and personal traits
of employees and workers.

•Use of company’s performance appraisal form designed by the company’s HR Manager.

THE SECONDARY SOURCES

•Books related to performance appraisal & induction policy.

•Handbook of the company.

•Internal survey of the organization.

•Searching on the internet for the significant information.

 CHAPTER 6
ANALYSIS AND INTERPRETATION:

PERFORMANCE APPRAISAL PROCESS OF VARUN BEVERAGES.

Department Head fills

Send Appraisal form to
the general information
the Department Head
about the employee

Department Head rate Department Head note

the employee as per down the key
their performance on responsibility areas of
the Job the assessee

The filled form is send

The performance
back to the Manager
Assessement Report is
and the Administration
Finaly approved by the
Department for the
Managing Director
FEEDBACK purpose
 Performance Appraisal Report
VARUN BEVERAGES LTD.

FeedbackApproval

Name: ………………… Dept: ………………… Reporting to …………………

Designation: ……………..

Grade: Staff/ Worker (Plz Tick)

Note: (To be filled by Dept Head as per Job Description)

KRAs: (Key Responsibility Areas of the Assess)

2. ………………………………………………………………….

3. ………………………………………………………………….

4. ………………………………………………………………….

Performance Assessment Report:

Factors: (Please Tick)

Job Knowledge Serious Satisfactory Well Good Exceptional

Gap Knowledge Informed Knowledge Expertise

Attitude No Careless Interested Enthusiastic Always

Interest Indifferent in work at Job very Enthusiastic

Quality of Below Somewhat Good Very Excellent

Work Standard on mark Satisfactory Good

Contribution Poor Average Good Excellent

To Work
Contact Poor Average Good Excellent
With other

Disciplined Poor Average Good Excellent

Attendance Poor Average Good Excellent

Report of HR & Admin

Dept……………………………………………………………………………………………
…………..………………………………………………………………………………………
…………………………………………………………………………………………………
……………………………………

Approved by Managing Director:

…………………………………………………………………
 FACTS AND FINDINGS DATA INTERPRETATION

Facts and findings:-

1. Majority of respondent come under the age group of 25-30.

2. In the 50 respondent 50% of the respondent are male and 50% of the respondent arefemale.

3. 50% of the respondents have got the experience of 5-10 years

4. 40% of the respondents are getting the salary range between 8000-10000.

5. 100% of the respondents are getting the on the job training.

6. Majority of the respondents are satisfied with their present salary.

7. 60% of the respondents are satisfied with the incentives scheme.

8. 50% of the respondents are aware with the job responsibility.

9. 60% of the respondents believe they possess the leadership qualities in them.

10.40% of the sample size reveals that qualification is an important factor in the process
of recruitment and selection
 LIMITATIONS

1. Single Appraisal System:

There was only one way in the Company to appraise the workers i.e. the superiors or
Department Head appraised the workers but there was no policy for the workers to
appraise their superiors.

2. Complex Appraisal Form:

The previous performance appraisal form of the Company was very complex which
made the appraisal process very confusing. But this drawback was removed later on
by introducing the Simple Appraisal Performa.

3. Pre-decided Appraisal Performa:

The performance appraisal report/ Performa of the Company were pre- decided
which did not included all the significant parameters but I was not permitted to design
my appraisal form.

4. Time Limitation:
As the employees were burdened with their work they could not give adequate time to
the appraisal process.

5. Favouritism:
I observed in some cases where the supervisor had rated high to some employees on
parameters like attitude towards work, discipline due to their favouritism which I
observed was not actually true for those employees as they were lazy and working at
the workplace.

6. Lack of Proper Appraisal Method:

The Company is using Graphic Rating Scale Method of performance appraisal for
years which is not enough keeping in mind the changing environment. The Company
should be flexible to change the appraisal technique as per the changing situation .In
the current scenario for having a clear and complete picture of the overall
performance of the employees 360 degree Appraisal should be introduced in the
Organization where the employees performance appraisal is made the superiors, peers
subordinates, clients, etc.

7. Limited Scope:
In the Company I was not permitted to evaluate the data for the appraisal purpose.
The Company had already set its evaluation and appraisal system and I was bound to
use the same data which was collected by the supervisor himself .
 DATA ANALYSIS & INTERPRETATION OF STAFF

SAMPLE SIZE: 30

JOB KNOWLEDGE
S-2 S-3 S-4

Serious Gap 1

Satisfactory Knowledge 2 5 2

Well informed 8 2 1

Good knowledge 4 1 1

Exceptional expertise 1 1 1

16

14

12

10 Serious Gap
Satisfactory knowledge
8
Well informed

6 Good knowledge
Exceptional Expertise
4

0
S-2 S-3 S-4

Interpretation:

Most of the employees have sufficient knowledge to perform their job

effectively.
 Attitude towards Work

S-2 S-3 S-4

No interest 1

Careless 1 2

Interested in work 2 2 5

Enthusiastic at job 3 4 2

Always very 3 5
enthusiastic

14

12

10
Always very ethusiastic
8 Enthusiastic at work
Interested in work
6
Careless

4 No interest

0
S-2 S-3 S-4

Interpretation :

More than 90% of employees have positive and enthusiastic attitude

towards work.
 Quality of work

S-2 S-3 S-4

Below standard 2 2

Somewhat on mark 2 5 4

Good satisfactory 3 4 2

Very Good 1 1

Excellent 3 1

14

12

10
Excellent
8 Very good
Good satisfactory
6
Somewhat on mark
4 Below standard

0
S-2 S-3 S-4

Interpretation :
A considerable employee quality of work is not up to the mark, the staff
employee need to improve their quality of work.
 Contribution to work

S-2 S-3 S-4

Poor

Average 5 2 1

Good 2 6 4

Excellent 1 4 5

14

12

10

8 Excellent
Good
6 Average
Poor
4

0
S-2 S-3 S-4

Interpretation :

All the workers are contributing well towards the work.

 Discipline

S-2 S-3 S-4

Poor

Average 1 3 2

Good 6 4 4

Excellent 4 4 2

12

10

Excellent

6 Good
Average
Poor
4

0
S-2 S-3 S-4

Interpretation :

More than half of employees are well discipline at the work.

 Contact with other

S-2 S-3 S-4

Poor 1 2 2

Average 2 4 4

Good 4 3 5

Excellent 2 1

14

12

10

Excellent
8
Good
6 Average
Poor
4

0
S-2 S-3 S-4

Interpretation :

Most of the employees need to work on improving their relationship and

contact with others.
 ATTENDANCE

S-2 S-3 S-4

Poor 1

Average 3 2 1

Good 5 6 4

Excellent 2 4 2

14

12

10

8 Excellent
Good
6 Average
Poor
4

0
S-2 S-3 S-4

Interpretation:

Almost all the members are punctual and attentive.

 QUESTIONNAIRE

SAMPLE SIZE: - 50

QUESTIONNAIRE FORM

1. NAME: …………………………………

2. ADDRESS: ………………………………

3. PHONE NO.: ……………………………

4. AGE

O 20-30
O 30-40
O 40-50
O 50 and above
5. Are you satisfied with the Performance Appraisal Process?
O Yes
O No.
6. How frequently should the Performance Appraisal be conducted in the Company?
O After 3 months
O After 6 months
O Once in a year
7. Do you think the Company should stick to the same Appraisal techniques forever?
O Yes
O No
8. Do you have sufficient knowledge of the present job?
O Yes
O No.
9. Is Performance Appraisal really effective in enhancing the performance of the
employees?
O Yes
O No

10. Do you think you have achieved the target performance level?
O Significantly
O Partially

11. What role does the Performance Appraisal play in the overall success of the
Company?
O Significantly
O Partially
O Minor
12. Is there a need of Post Appraisal interview in the Organization?
O Yes
O No
13. Do you think separate training should be given to the raters for the appraisal
programme ?
O Yes
O No
14. What role does the Performance Appraisal play in maintaining the cordial
relationship between superiors and subordinates?
O Major
O Minor
 QUESTIONNAIRE RESPONSE

Q4.

AGE

20-30
30-40
40-50
50 and above

Q5.

Satisfaction with PA process

YES
NO
Q6.

How frequently should the Performance

Appraisal be conducted in the Company

After 3 months
After 6 months
Once in year

Q7.

Do you think the Company should stick to

the same Appraisal techniques forever?
35

30

25

20
Do you think the Company
15 should stick to the same
Appraisal techniques forever?
10

0
Yes
No
Q8.

Do you have sufficient knowledge of the

present job?

1st Qtr
2nd Qtr

Q9.

Is Performance Appraisal really effective in

enhancing the performance of
theemployees?

1st Qtr
2nd Qtr
Q10.

Do you think you have achieved the target

performance level?

Significant
Partial

Q11.

What role does the Performance Appraisal

play in the overall success of the Company

Significant
Partial
Minor
Q12.

Is there a need of Post Appraisal interview in

the Organization

YES
NO

Q13.

Do you think separate training should be

given to the raters for the
appraisalprogramme

1st Qtr
2nd Qtr
Q14.

What role does the Performance Appraisal

play in maintaining the cordial relationship
between superiors and subordinates?

Major role
Minor role
 CHAPTER 7

CONCLUSION

From the entire study on the project on the topic, it is being concluded that the performance
appraisal programme is very important for any Organization. The growth and success of the
Company is mostly dependent on the efficiency and effectiveness of the human resource
which can be properly measured through the effective performance appraisal programme.

The Performance Appraisal Programme helps the management in assessing the current level
of performance of the employees and can find the variance or gap between the current and
desired level of performance of employees.

In context of the Company under study i.e. Varun Beverage ltd (PepsiCo). the Company has
analyzed the performance of its staff members and the workers taking various parameters
namely Job Knowledge, Attitude towards Work, Quality of Work. It is being analyzed that
the employees have adequate job knowledge, they are very enthusiastic at work,
they are punctual, well disciplined and maintain good relationship with others. On the other
hand the quality of work is the aspect that draws the management attention for improvement.
Through this appraisal the management could find out theare as where the performance is
lacking behind and could detect and analyze the root cause of the problem and try to remove
the deviation to improve the overall performance of the Organization.
 SUGGESTIONS

Some suggestions to increase the usefulness of study: -

1. Feedback: -

Efforts should be made to communicate the ratings to both the employees as well as the
raters. The employees should be informed about their performance and should also be
provided adequate counseling on how to fill the gap to reach the desired performance level.

2. Simplicity:

The Performance Appraisal Performa should be made as simple as possible

toincrease the effectiveness of the programme and reduce the complexity and unnecessary
confusion.

3. 360 degree Performance Appraisal:

360 degree performance appraisal should be introduced in the Organization to have a

more accurate picture of the performance of the employee.

4. Trained Raters:

The Evaluators should be given adequate training in order to provide them knowledge
and skills in designing appraisals, conducting post appraisal interviews and correcting the
rating errors.

5. Post Appraisal Interview:

- After the appraisal of the employees, a post appraisalinterview should be conducted to know
the difficulties of the work and training needs of the employees.

6. Unbiased:

The entire performance appraisal process must be unbiased. The rater must rate the employee
on the basis of his real work performance and must also avoid favouritism while rating.

7. Frequent Appraisal:

The performance appraisal should be done at regular interval i.e. twice a year so that a perfect
comparison of skills could be done. It should be done after 2 months for the new employees.
 Websites, Magazines and other References:-

Magazines and other References-

HRM Review, Cover Story-strategic HRM

Annual Report of Varun Beverage Ltd.

Induction Profile of Varun Beverage Ltd.

Websites-
•www.humanresourse.about.com
•www.hrmguide.com
•www.hr-topics.com
•www.hrmmguide.net
•www.google.com

BIBLIOGRAPHY

The following books were referred during the preparation of the project report: -

1. Human Resource Management -K. Ashwathappa

2. Human Resource Management -G. S. Sudha

3. Human Resource Management -C. B. Mamoria, S.V.Gankar

4. Personnel Management -Edwin B. Flippo

5. Personnel Management; Theory & practice -Mac Farland, D.E.

6. Principles of Management - R. L. Nolakha

https://www.scribd.com/doc/73635161/Pepsico-Performance-Appraisal-and-Induction-Policy

https://www.slideshare.net/anujprapanna1/varun-bevrage

http://www.allprojectreports.com/MBA-Projects/HR-Project-Report/performance-appraisal-
system-bsnl-project-report/literature_review_and_concept_research_performance-appraisal-
system-ch2.htm